Judges didn’t dismiss the case as Apple requested, so a UK class action lawsuit against the tech giant over App Store commission fees will proceed, reports Bloomberg (a subscription is required to read the article).
The lawsuit alleges Apple’s 15-30% commission on App Store sales creates an anti-competitive tax on the UK technology industry. The lawsuit seeks £785 million (about US$995 million) in damages on behalf of UK app developers. The case could potentially benefit up to 13,000 developers who have sold apps or in-app subscriptions to iOS users since July 2017.
Apple will also face a UK trial over claims it overcharges for apps on the App Store. Dr Rachael Kent’s over-£1.5 billion class action claim against Apple for allegedly overcharging in relation to the Apple App Store has been expanded to cover consumers who made purchases on the App Store between October 1, 2015, and November 15, 2024.
In addition to individuals and businesses who, between October 1, 2015, and August 8, 2024, made for themselves and/or another person, one or more purchases of an app or digital content, services or subscriptions within an app (excluding Apple apps) from an iPhone or iPad device in the UK storefront of the App Store, the UK’s Competition Appeal Tribunal has confirmed that individuals and businesses who made Relevant Purchases for the first time between August 9, 2024, and November 15, 2024, are now also included.
Further information regarding the claim can be read on the claim website here. The expansion of eligible class members comes as the claim proceeds to full trial on January 13, 2025.
The lawsuit was filed in 2021. Apple’s 30% fee is “excessive” and “unlawful,” per the claimants.
“Apple is abusing its dominance in the app store market, which in turn impacts U.K. consumers,” Kent, the lead claimant in the case and a professor at King’s College London. Apple strongly disagrees, of course.
“We believe this lawsuit is meritless and welcome the opportunity to discuss with the court our unwavering commitment to consumers and the many benefits the App Store has delivered to the U.K.’s innovation economy,” Apple said in an emailed statement to Bloomberg. “The commission charged by the App Store is very much in the mainstream of those charged by all other digital marketplaces. In fact, 84% of apps on the App Store are free and developers pay Apple nothing. And for the vast majority of developers who do pay Apple a commission because they are selling a digital good or service, they are eligible for a commission rate of 15%.”
Article provided with permission from AppleWorld.Today
